<...>That is the most common strategy between traditional wealth and asset managers. Now that everyone's talking bitcoin they are suggesting a tiny exposure to counterbalance stocks, bonds and other traditional assets. Usually they propose between 1-5% btc exposure. Which is not bad on a multi-million portfolio.
As I wrote elsewhere (on my infamous Proudhon
post).
When I decided to buy bitcoin I made a few back of the envelope calculation. The first one was about gold parity, pointing to 350k dollar at the time (now more in the 500k region).
A second one was about the answer of the following question: what if everyone put 1% of their financial wealth on bitcoin.
So a few computation (getting updated figures for gold parity consistency):
World financial wealth (Credit Suisse 2020) : 360 Trln
1% : 3.60 Trillion
This has to becdivided over
21 million bitcoins (I want a conservative number)
Target price: 170,000 USD
Not bad.
Bullish.
My body is ready.
This is why I am particularly excited when I hear someone suggesting a tiny %age allocation to bitcoin in big portfolios.